The Challenge
Our client was experiencing a high volume of chargebacks occurring on their weekly invoice. Several of our client’s customers discovered that if they received shipments via Freight Collect, they could then refuse the charges after the packages had been delivered. This in turn resulted in our client being billed for a “chargeback” (at $12.35 per package), in addition to the original freight charges. Additionally, these recipients were sometimes providing inaccurate accounts to bill charges to, resulting in chargebacks as well.

The Action Plan
7th Man Analytics identified this activity and quickly verified that all of the chargebacks were legitimate and did not constitute erroneous charges on the carrier’s behalf. 7th Man Analytics provided the customer a clean list of offending transactions, recipients, and amounts.

The Outcome
Our client was able to take remediating action and recouped thousands of dollars in chargebacks and surcharges. They also clarified their policy to prevent abuse going forward.